Covidien Offering Possible 11.11% Return Over the Next 32 Calendar Days

Covidien's most recent trend suggests a bullish bias. One trading opportunity on Covidien is a Bull Put Spread using a strike $70.00 short put and a strike $65.00 long put offers a potential 11.11% return on risk over the next 32 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $70.00 by expiration. The full premium credit of $0.50 would be kept by the premium seller. The risk of $4.50 would be incurred if the stock dropped below the $65.00 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Covidien is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Covidien is bullish.

The RSI indicator is at 63.82 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for Covidien

Covidien to Present at Upcoming Investor Conferences
Tue, 18 Feb 2014 12:00:00 GMT

Covidien to Present at Upcoming Investor Conferences
Tue, 18 Feb 2014 12:00:00 GMT
Business Wire – Covidien plc will present at two upcoming investor conferences — the Citi 2014 Global Healthcare Conference on Feb. 25 and the RBC Capital Markets 2014 Global Healthcare Conference on Feb.

Why Iridian sold a position in Crown Holdings
Mon, 17 Feb 2014 13:00:10 GMT

Covidien Looks Fully Valued
Mon, 17 Feb 2014 11:30:00 GMT

Covidien Looks Fully Valued
Mon, 17 Feb 2014 11:30:00 GMT

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